HC Deb 11 January 2001 vol 360 cc1224-6
5. Mr. David Amess (Southend, West)

If he will make a statement on the funding of schools. [143462]

The Minister for School Standards (Ms Estelle Morris)

For 2001–02, we have increased the total revenue funding available to local authorities by £1.5 billion. Moreover, the direct grant that is payable to schools has increased from £290 million to £540 million.

Mr. Amess

Will the Minister confirm that the money announced to deal with staff shortages will not help a single school in Southend, because our schools do not meet either the criterion requiring a maximum of 25 per cent. of A to C passes, or the criterion relating to free school meals? Will she also confirm that the new money for information technology that was announced yesterday had already been announced on 30 October last year, and that in any case £2.9 million of it will have to be raised by the council tax payers of Essex?

Ms Morris

I should have expected the hon. Gentleman to want to let schools in his constituency know that there is extra money for staff recruitment and retention, if that is how they choose to spend it. He will be aware that all schools—primary and secondary—have received a direct grant. If schools in Southend or in Essex generally want to use it for retention purposes, or to recruit extra staff to teach shortage subjects, they can do so.

The hon. Gentleman said, rightly, that last Friday we announced the provision of £32 million for schools in challenging circumstances, particularly those serving deprived communities, in addition to the special direct grant received by every school—nursery, primary or secondary—accompanied by a guarantee that it will be paid over the next two years and increased by 2.75 per cent. I wonder whether he can confirm that that increased amount would continue to be paid to schools in his constituency if Labour were not in power.

Charlotte Atkins (Staffordshire, Moorlands)

Over the last few years I have opened a huge number of computer suites, science laboratories and school extensions because of the Government's massive investment in education in Staffordshire. However, Staffordshire's local education authority still suffers because of its unfair standard spending assessment formula. May I urge my right hon. Friend to continue to make direct payments to schools, thus providing a short-term solution? Will she also go on trying to find a long-term solution to the problem of the tremendously unfair funding delivered to schools by the SSA formula?

Ms Morris

That is a fair and balanced question. My hon. Friend is right on both counts. I have never sought to defend the SSA formula, which seems to allocate resources haphazardly to different local authorities. As she and the House will know, we inherited the formula from the previous Government, who made no attempt to change it. I give the assurance that we have given before. We are looking at that matter. It is part of the consultation. We have given a commitment to have transparency of funding and funding that is fairer than in at the moment.

Even with the SSA formula, Staffordshire schools and Staffordshire children are far better funded than ever before. That has been matched by the increase in capital money and in direct grant. I know that my hon. Friend will welcome the fact that one of the advantages of the direct grants that are payable to schools is that they do not reflect the SSA formula. Children in Staffordshire and in other local authorities that feel poorly treated by the SSA formula will have welcomed the fact that, through that special grant, they are treated the same: those children's needs are treated the same as those of every other child.

Mr. Tim Boswell (Daventry)

Does the Minister accept that, after three and a half years of Labour Government, with schools now facing a crisis in teacher recruitment and needing every penny of resources that they can get, it is not acceptable for an unholy alliance of LEAs and her Department to continue to hold back £540 per pupil per year, mainly occupied in administration and in servicing not so much education as bureaucracy—money which our free schools policy would return to schools to do their job?

Ms Morris

If that is Conservative party policy for meeting the challenges that schools face, it lacks any direction, substance or hope. The hon. Gentleman has a cheek. At least under the present Government, we know how much money is delegated from local authorities to schools because we publish the figures, which the previous Government never did.

When we look at the figures, far from seeing that local authorities are holding more money back, more money is being delegated direct to schools than ever before. That is one of the differences between the Tories and the Government. It is right that local authorities are the ones that organise school transport and that do the administration on admissions. It is right that some of that money is held back for some children with special education needs. I have never ever yet met one head teacher who wants to use his or her time organising a bus or taxi system for children with special education needs.

That is the money that the Tories want to delegate to schools. What is interesting is that there would not be a penny more from central Government. Their policy is to take the money from local authorities that is already being spent on raising standards and on helping many disadvantaged groups and to give that to schools. The hon. Gentleman is wrong. We have delegated more and head teachers know it.

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